Implications of a Government Shutdown: An Overview on SNAP, Student Loans, and Travel

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Amid ongoing legislative stalemate in Washington, the prospect of a government shutdown is increasingly likely, given the approaching Saturday night deadline.

Despite the Senate’s concerted bipartisan efforts to prevent a government closure, funding bills continue to face roadblocks in the Republican-led House of Representatives. Should a shutdown occur, a considerable number of federal employees will be put on furlough, while others, such as military personnel and Transportation Security Administration workers, will be required to perform their duties without remuneration until the situation is resolved.

Various federal programs that Americans depend upon daily stand at risk of interruption. These range from depleting financial reserves for food aid programs to anticipated lags in service delivery for Medicare and Social Security beneficiaries. The extent of these ramifications will be contingent on the duration of the shutdown and the preparedness plans set by the affected agencies.

Forrest V. Morgeson III, an associate professor at Michigan State University’s Broad College of Business, pointed out that a potential shutdown would introduce considerable fiscal instability and have far-reaching economic consequences.

Potential Impact on SNAP and WIC Programs

A government closure threatens to adversely affect millions of low-income Americans reliant on food aid programs. The severity of these effects is dependent on the length of the shutdown and available emergency funds for each program.

According to the Biden Administration, nearly 7 million women and children enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) are at immediate risk. Federal contingency funding for WIC is expected to be depleted within days, pushing states to rely on their reserves or carryover funds. Dr. Nancy Nielsen, senior associate dean for health policy at the University at Buffalo’s Jacobs School of Medicine & Biomedical Sciences, emphasized that affected families would likely turn to food banks as a last resort.

Families participating in the Supplemental Nutrition Assistance Program (SNAP) could also experience disruptions if the shutdown prolongs. Despite the impending legislative crisis, the Agriculture Department assures that SNAP benefits for households will continue as usual through October.

Uncertainty Around Head Start and School Lunch Programs

Head Start programs that cater to more than 10,000 underprivileged children could lose federal support immediately. However, temporary reprieve might be possible if the shutdown is brief.

Tommy Sheridan, the deputy director for the National Head Start Association, warned that the programs are particularly vulnerable since their funding is renewed on October 1. Additionally, concerns about the federal school meal program have emerged, although the Agriculture Department does not foresee immediate issues due to existing permanent and mandatory funding.

Continuity of Social Security Payments

Despite the legislative stalemate, Social Security and Supplemental Security Income payments are expected to continue. However, the speed at which queries are addressed may suffer due to employee furloughs. According to contingency plans from the Social Security Administration, non-critical activities will be suspended.

Medicare and Health Services During a Shutdown

Both Medicare and Medicaid are mandatory programs with separate funding, so beneficiaries should still have access to medical services. Nevertheless, customer service might be compromised due to staff furloughs.

Travel Considerations Under a Shutdown

Although air travel is expected to proceed relatively unhampered, air traffic controllers and TSA personnel will be working without pay. Transportation Secretary Pete Buttigieg stated that air travel safety would not be compromised, but training for new controllers will be suspended, exacerbating existing staff shortages.

Student Loans and Federal Aid

The potential shutdown coincides with the day student loans resume accruing interest post-pandemic pause. Payments are still due, and although loan servicers are largely expected to process payments as usual, borrowers might experience delays in consulting the Education Department due to potential furloughs.

Postal Services Unaffected

The United States Postal Service, self-funded through its sales and services, is expected to operate as usual.

Contributors: David Koenig in Dallas and Heather Hollingsworth in Kansas City.

Frequently Asked Questions (FAQs) about Government Shutdown Implications

More about Government Shutdown Implications

• Understanding Government Shutdowns
• Impact of a Government Shutdown on Federal Agencies
• What Happens During a Government Shutdown?
• Social Security During a Government Shutdown
• Air Travel During Government Shutdown
• Student Loans and Government Shutdown
• US Postal Service and Government Shutdown
• Medicare and Medicaid During Government Shutdown
• Passports, Visas, and Government Shutdown
• Impact on Federal Nutrition Programs